EFTA02596989

From: Brad Wechsler < > Sent: Wednesda , December 3, 2014 3:23 PM To: ; [email protected]* Subject: Re: Regan Arts Has anyone reached out to keith and Judy to provide them a little context so they don't feel threatened. If yes, good; if not I will. Pls let me know. From: Richard Joslin [mak° Sent: Wednesday, December 03, 2014 09:35 AM To: Jeffrey E. <[email protected]>; Brad Wechsler Subject: FW: Regan Arts I summarized open questions to Phaidon accounting team below From: Richard Joslin Sent: Wednesday, December 03, 2014 9:26 AM To: ;John Murphy Subject: Regan Arts Please take a look at this — I'd like to have a call this morning to discuss. Thanks Revenue How was 47% of list price derived? Is that contractual with distributor? If there is a second printing, is the 47% continue to apply? Direct costs PPB - what is the derivation on a per title basis — cost varies per unit/ median $1.72/ title. PPB If there is a second printing would the per unit amount remain the same? EFTA_R1_01782292 EFTA02596989 Plant expense - what is the derivation on a per title basis. Please provide detail, eg development, photo, artist fees, copy editing Plant expense — please confirm that if there is a second printing then there is no incremental plant expense Royalty — pls send some sample contracts Royalty — I see benchmark payment schedule, eg amount at hardcover publish date; amount at softcover publish date. Are these contractual by date? Royalty — Under what circumstances would these amounts need to be returned? Royalty — if there is a scheduled softcover payment and the book is not release in softcover, is the payment cancelled? Royalty — what is Royalty/ expense memorandum? I assume it is the total amount of advances paid to author? Royalty — Cash flow — Cash Outflow (Best case scenario) includes "Royalties advances (14) ($1,441,000) and "Additional (14) Royalty Payments ($1,552,071). These two amounts add up to $2,993,071. I understand this amount to be equal to total royalties payable if all print quantities sold. Please clarify that the "Royalty Advances(14) were actually paid in 2014 (not 2015). Selling and distribution — 10% is paid to distributor; what is the additional 3%? If there is a second printing, is 13% continue to apply? M&P - what is the derivation on a per title basis. Please provide detail Freight - what is the derivation on a per title basis. Please provide detail Richard Joslin 2 EFTA_R1_01782293 EFTA02596990 CFO Elysium Management LLC 445 Park Ave Ste. 1401 New York, NY 10022 (w) (c) (f) www.imax.com IMAX is a registered trademark of IMAX Corporation. IMPORTANT NOTICE Information contained in this e-mail correspondence and any attachments is confidential information intended only for the use of the individual or entity named above. Any reader of this message who is not the intended recipient of this correspondence is hereby notified that any dissemination, distribution, copying or communication of the contents of this correspondence is strict) rohibited. If this e-mail was not addressed to ou , lease immediately notify us by phone in Canada at (collect calls will be accepted) or by email at and delete and destroy this correspondence inadvertently sent to you. Thank you 3 EFTA_R1_01782294 EFTA02596991